China Raises Interest Rates


People's Bank of China increased interest rates for the third time this year on July 6, making clear that taming inflation is a top priority even when as the economy slows.

Benchmark one-year lending rates will be raised 25 basis points to 6.56 percent, and benchmark one-year deposit rates will be raised 25 basis points to 3.5 percent.

Abundant liquidity and elevated commodity prices drove China's inflation to a 34-month high of 5.5 percent in May, unsettling Beijing which worries rising prices may stir social unrest.


TradingEconomics.com, Reuters
7/6/2011 12:03:12 PM